Principal Financial Group (NASDAQ:PFG) Share Price Crosses Below Fifty Day Moving Average - Should You Sell?

Key Points

• PFG shares fell below their 50-day moving average, trading near $110.91 versus the average of $112.31.
• Analysts have a consensus Hold rating and an average price target of $107.75; recent ratings and target changes were mixed.
• Quarterly EPS of $2.22 missed estimates of $2.46, while revenue of $4.62 billion topped forecasts. The company raised its quarterly dividend to $0.85 per share.

Principal Financial Group, Inc. (NASDAQ:PFG - Get Free Report) shares crossed below its 50-day moving average during trading on Friday. The stock has a 50-day moving average of $112.31 and traded as low as $110.82. Principal Financial Group shares last traded at $110.91, with a volume of 1,160,296 shares.

Analyst Upgrades and Downgrades

Several brokerages have recently weighed in on PFG. UBS Group reduced their price target on Principal Financial Group from $120.00 to $112.00 and set a "neutral" rating on the stock in a report on Tuesday, October 27th. Barclays cut their price target on Principal Financial Group from $92.00 to $86.00 and set an "underweight" rating for the company in a research note on Wednesday, October 7th. Bank of America boosted their target price on Principal Financial Group from $94.00 to $104.00 and gave the company an "underperform" rating in a research note on Tuesday, July 28th. Keefe, Bruyette & Woods decreased their price target on shares of Principal Financial Group from $117.00 to $115.00 and set a "market perform" rating for the company in a research note on Friday, October 9th. Finally, Jefferies Financial Group increased their price objective on Principal Financial Group from $91.00 to $98.00 and gave the stock a "hold" rating in a report on Friday, July 10th. Three analysts have rated the stock with a Buy rating, six have assigned a Hold rating and three have issued a Sell rating to the company. According to data from MarketBeat.com, the stock has a consensus rating of "Hold" and an average target price of $107.75.

Principal Financial Group Price Performance

The company has a market capitalization of $23.56 billion, a P/E ratio of 12.32, a PEG ratio of 1.29 and a beta of 0.87. The company has a quick ratio of 0.28, a current ratio of 0.28 and a debt-to-equity ratio of 0.37. The business has a 50 day simple moving average of $112.31 and a 200-day simple moving average of $104.06.

Principal Financial Group (NASDAQ:PFG - Get Free Report) last issued its earnings results on Thursday, October 29th. The company reported $2.22 earnings per share (EPS) for the quarter, missing the consensus estimate of $2.46 by ($0.24). The business had revenue of $4.62 billion during the quarter, compared to the consensus estimate of $4.31 billion. Principal Financial Group had a net margin of 11.89% and a return on equity of 16.51%. During the same period last year, the business posted $2.32 EPS. Analysts predict that Principal Financial Group, Inc. will post 9.18 EPS for the current fiscal year.

Principal Financial Group Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Friday, December 18th. Shareholders of record on Wednesday, December 2nd will be paid a $0.85 dividend. The ex-dividend date is Wednesday, December 2nd. This is a positive change from Principal Financial Group's previous quarterly dividend of $0.84. This represents a $3.40 dividend on an annualized basis and a yield of 3.1%. Principal Financial Group's payout ratio is 37.33%.

Institutional Investors Weigh In On Principal Financial Group

A number of large investors have recently modified their holdings of the company. Focus Financial Network Inc. grew its position in Principal Financial Group by 2.0% during the second quarter. Focus Financial Network Inc. now owns 5,613 shares of the company's stock valued at $605,000 after acquiring an additional 110 shares during the period. Prosperity Consulting Group LLC increased its stake in shares of Principal Financial Group by 1.6% in the first quarter. Prosperity Consulting Group LLC now owns 6,921 shares of the company's stock valued at $624,000 after buying an additional 111 shares during the period. Beacon Financial Group increased its holdings in Principal Financial Group by 2.8% in the 1st quarter. Beacon Financial Group now owns 4,451 shares of the company's stock worth $401,000 after acquiring an additional 120 shares during the last quarter. Keybank National Association OH raised its position in shares of Principal Financial Group by 1.7% in the 3rd quarter. Keybank National Association OH now owns 7,169 shares of the company's stock worth $803,000 after acquiring an additional 121 shares in the last quarter. Finally, XXI Wealth LLC boosted its holdings in shares of Principal Financial Group by 4.5% during the 3rd quarter. XXI Wealth LLC now owns 2,836 shares of the company's stock valued at $318,000 after purchasing an additional 123 shares during the last quarter. 75.08% of the stock is owned by hedge funds and other institutional investors.

Principal Financial Group Company Profile

Principal Financial Group, Inc is a global financial services company that helps individuals and businesses build, protect and manage wealth. Its offerings include retirement plans, individual retirement accounts, investment products, life and disability insurance, and financial wellness solutions. The company also provides institutional investment management and pension-risk transfer services.

Principal serves employers, institutions and individual investors through a range of retirement and workplace benefits solutions.

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